Industrial Production and Capacity Utilization - G.17

Industrial production increased 0.1 percent in February after decreasing 0.3 percent in January. In February, manufacturing output moved down 0.2 percent, its third consecutive monthly decline. The rates of change for the total index in January and for manufacturing in both December and January are lower than previously reported. The index for mining fell 2.5 percent in February; drops in the indexes for coal mining and for oil and gas well drilling and servicing primarily accounted for the decrease. The output of utilities jumped 7.3 percent, as especially cold temperatures drove up demand for heating. At 105.8 percent of its 2007 average, total industrial production in February was 3.5 percent above its level of a year earlier. Capacity utilization for the industrial sector decreased to 78.9 percent in February, a rate that is 1.2 percentage points below its long-run (1972–2014) average.

Industrial Production and Capacity Utilization: Summary

Seasonally adjusted

Industrial production

2007=100

Percent change

2014

2015

2014

2015

Feb. '14 toFeb. '15

Sept.[r]

Oct.[r]

Nov.[r]

Dec.[r]

Jan.[r]

Feb.[p]

Sept.[r]

Oct.[r]

Nov.[r]

Dec.[r]

Jan.[r]

Feb.[p]

Total index

105.2

105.1

106.3

106.1

105.7

105.8

.7

-.1

1.2

-.2

-.3

.1

3.5

Previous estimates

105.2

105.1

106.3

106.0

106.2

.7

-.1

1.1

-.3

.2

Major market groups

Final Products

100.7

100.7

102.6

101.8

101.5

101.9

.6

.0

1.8

-.8

-.2

.4

2.2

Consumer goods

97.4

97.1

99.2

98.5

98.4

99.4

1.0

-.3

2.2

-.7

-.1

1.0

2.2

Business equipment

107.6

108.8

110.4

109.0

109.4

109.1

-.4

1.1

1.5

-1.3

.3

-.3

4.0

Nonindustrial supplies

92.4

92.6

93.3

93.0

92.8

93.1

.8

.2

.8

-.3

-.2

.3

2.8

Construction

86.1

86.7

86.7

87.6

86.7

86.4

.3

.7

.1

1.0

-1.0

-.4

4.1

Materials

113.7

113.4

114.3

114.6

114.1

113.8

.8

-.3

.8

.2

-.4

-.2

4.7

Major industry groups

Manufacturing (see note below)

100.6

100.7

101.9

101.8

101.5

101.3

.2

.1

1.2

-.1

-.3

-.2

3.4

Previous estimates

100.7

100.8

102.0

102.0

102.1

.3

.1

1.2

.0

.2

Mining

133.8

132.2

131.9

134.6

132.9

129.5

.9

-1.1

-.3

2.0

-1.3

-2.5

5.3

Utilities

101.2

101.6

105.3

100.0

100.9

108.3

4.2

.4

3.6

-5.0

1.0

7.3

1.3

Capacity utilization

Percent of capacity

Capacitygrowth

Average1972-2014

1988-89high

1990-91low

1994-95high

2009low

2014Feb.

2014

2015

Feb. '14 toFeb. '15

Sept.[r]

Oct.[r]

Nov.[r]

Dec.[r]

Jan.[r]

Feb.[p]

Total industry

80.1

85.3

78.7

85.0

66.9

78.6

79.4

79.1

79.8

79.4

79.1

78.9

3.1

Previous estimates

79.4

79.1

79.8

79.4

79.4

Manufacturing (see note below)

78.6

85.6

77.3

84.6

63.9

76.4

77.4

77.3

78.1

77.9

77.6

77.3

2.1

Previous estimates

77.5

77.4

78.2

78.0

78.1

Mining

87.3

86.3

83.8

88.5

78.8

87.5

90.2

88.4

87.5

88.5

87.2

84.6

8.9

Utilities

85.9

92.9

84.3

93.3

78.5

84.2

79.1

79.4

82.2

78.0

78.7

84.5

.9

Stage-of-process groups

Crude

86.3

87.7

84.4

89.6

76.8

85.8

87.8

86.4

85.6

86.4

85.3

83.5

7.1

Primary and semifinished

80.8

86.5

77.9

87.7

64.2

77.7

77.8

77.7

78.7

77.7

77.5

78.4

2.0

Finished

77.1

83.4

77.4

80.6

66.8

76.3

77.1

77.2

78.4

77.9

77.8

77.4

2.1

r Revised. p Preliminary.

Market Groups

Among the major market groups, the indexes for consumer goods, for defense and space equipment, and for business supplies registered gains in February, while losses were recorded by business equipment, construction supplies, and materials. The index for consumer goods moved up 1.0 percent, with the increase more than accounted for by a gain of 7.6 percent for consumer energy products, which reflected a jump in sales to consumers by utilities. The output of durable consumer goods dropped 1.4 percent, and the production of non-energy nondurables decreased 0.2 percent. The output of business equipment declined 0.3 percent, with an increase for transit equipment and decreases for information processing equipment and for industrial and other equipment. The index for materials declined 0.2 percent, with a drop of 0.8 percent in the output of durable materials partially offset by small gains for both nondurable materials and energy materials.

Industry Groups

Manufacturing output decreased 0.2 percent in February. The production of durable goods moved down 0.6 percent, with widespread losses among its components, and the production of nondurable goods moved up 0.2 percent. The motor vehicles and parts industry posted a loss of 3.0 percent, the largest decrease among durable goods manufacturers; most other industries moved down more than 0.5 percent. Only the aerospace and miscellaneous transportation equipment industry recorded a significant increase in production, advancing 1.2 percent. Among the major nondurable goods industries, gains in the indexes for textile and product mills, for petroleum and coal products, and for chemicals more than offset losses elsewhere. The production of other manufacturing industries (publishing and logging) moved up 0.5 percent.

The capacity utilization rate for manufacturing decreased 0.3 percentage point in February to 77.3 percent, a rate 1.3 percentage points below its long-run average. The operating rate for durable goods manufacturing moved down 0.7 percentage point to 76.9 percent, just below its long-run average, and the operating rate for nondurable goods manufacturing edged up 0.1 percentage point to 79.5 percent, about 1 percentage point below its long-run average. Utilization for other manufacturing (publishing and logging) increased 0.3 percentage point to 57.5 percent. The operating rate for mines dropped 2.6 percentage points to 84.6 percent, while capacity utilization for utilities increased 5.8 percentage points to 84.5 percent.